THE BOURSE WHISPERER: Blackthorn Resources (ASX: BTR) has reached a non-binding conditional agreement with Glencore Xstrata to sell the company’s equity interest in the Perkoa JV and related assets, in Burkina Faso.
The deal includes Blackthorn’s interests in the Northern Tenement exploration licences, consisting of the Poa, Guido, Seboun and Sepaogo licences adjacent to the Perkoa project.
The deal makes sound financial sense for Blackthorn with the company set to pocket a cash payment of up to US$12 million as consideration for the sale.
This consists of US$10 million for its equity interest in the Perkoa project and up to US$2 million for exploration expenditure already incurred by Blackthorn.
As a sweetener, Blackthorn Resources will not be required to contribute its share of the US$30 million working capital funding requirements with the company to be released from all claims and contingent liabilities in relation to the Perkoa project, including its contingent liability under a Working Capital Facility Agreement.
Blackthorn indicated it would now be focussing on the development of the Kitumba copper project, in Zambia.
“We are very pleased with the settlement agreed with our partners Glencore Xstrata for the Perkoa project, and while we are disappointed to end our association with the project, this settlement provides significant capital for Blackthorn Resources to move forward with, and will allow all parties to focus on the future,” Blackthorn Resources chief executive officer Mark Mitchell said in the company’s announcement to the Australian Securities Exchange.
“Our immediate focus remains on progressing the development of the Kitumba copper project in Zambia, which will continue with the benefit of the additional funds provided by the Perkoa settlement.
“Also, beyond Kitumba, we now have the means to consider new opportunities.”